Limited liability Partnership

It is capable of entering into contracts and holding property in its own name. Liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.

The LLP is a separate legal entity, is Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct. Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Sequential incorporation process for LLP registration

• Application for DPIN (Designated partner identification number)
• Register DSC (Digital signature certificate)
• User registration / Apply for name approval
• Apply for LLP registration documents
• Filing of LLP agreement and consent of designated partners

Advantages of Limited Liability Partnership 

• Less tax burden compared to company status
• No restriction for maximum number of partners ( minimum two partners no limit for  maximum partners )
• Organized and operates on the basis of an agreement.
• Flexibility without imposing detailed legal and procedural requirements.
• Enables professional/technical expertise and initiative to combine with financial risk taking capacity in an innovative and efficient manner.